Relating Carbon Dioxide Emissions with Macroeconomic Variables in the Philippine Setting - Low Carbon Economy

LCE > Vol.7 No.1, March 2016

Relating Carbon Dioxide Emissions with Macroeconomic Variables in the Philippine Setting ()

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DOI: 10.4236/lce.2016.71002 2,877 Downloads 5,087 Views Citations

Author(s)

Rosalina Palanca-Tan, Timothy Allen Dy, Angela Tan

Affiliation(s)

Department of Economics, Ateneo de Manila University, Quezon City, Philippines.

ABSTRACT

Using cointegration and error correction modeling techniques, this paper examines the dynamics of carbon dioxide (CO₂) emissions in relation to economic growth, energy consumption, trade openness, urbanization and foreign direct investments in the case of the Philippines. The study finds that 1) economic growth and CO₂ emissions have a significant positive linear relationship, suggesting that income growth policies must be subject to reasonably stringent environmental constraints related to CO₂ emissions; 2) CO₂ emissions are inelastic with respect to energy use in the short run, but its response becomes elastic in the long-run; and 3) CO₂ emissions have a positive elasticity with respect to FDI which conforms with the Pollution Haven hypothesis.

KEYWORDS

Carbon Dioxide Emissions, Environmental Kuznets Curve (EKC), Pollution Haven Hypothesis, Urbanization, Trade Openness

Share and Cite:

Palanca-Tan, R. , Dy, T. and Tan, A. (2016) Relating Carbon Dioxide Emissions with Macroeconomic Variables in the Philippine Setting. Low Carbon Economy, 7, 12-20. doi: 10.4236/lce.2016.71002.

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